Fetch.ai’s (FET) token, a frontrunner in the AI crypto space, finds itself in an interesting position. While the upcoming launch of the Artificial Superintelligence Alliance (ASI) token fuels bullish sentiment, a surge in profitable holdings threatens to stall the rally.
This week’s price increase pushed a significant chunk of FET holders into profitability. According to the Global In/Out of the Money (GIOM) indicator, roughly 748 million FET tokens, worth over $1 billion, became profitable. This represents a whopping 27% of the circulating supply, a significant jump from the previous 42%.
This newfound profitability could trigger a selling spree, potentially pushing the price back down to $1.04. The recent migration of OCEAN and AGIX tokens to the Fetch.ai network further amplified this risk by increasing the total supply in profit.
Historically, the cryptocurrency market observes selling pressure around the 80% profitability mark. While we haven’t reached that level yet, the sheer volume of recently profitable investors raises concerns about early selling.
The upcoming launch of the ASI token, the brainchild of the Fetch.ai, Ocean Protocol, and SingularityNET mergers, adds another layer of complexity. While the event is anticipated with excitement, it also presents an opportunity for investors to cash out on their FET holdings.
Currently, FET is trading at $1.44, attempting to establish support at the $1.40 level. If profit-taking intensifies, the token could fall through this support, dragging the price down to $1.20 or even $1.04.
However, there’s still a chance for the bulls. If the $1.40 support holds, FET could bounce back towards $1.71. A decisive break above this resistance would invalidate the bearish outlook and potentially trigger a fresh rally.
The coming days will be crucial for FET. Whether the excitement surrounding ASI translates to sustained price growth or fizzles out due to profit-taking remains to be seen.
